Employee v. Independent Contractor?

Minnesota's wage and hour laws do not apply to workers that are considered “independent contractors”. It is also illegal for employers to classify a worker as an independent contractor if the worker qualifies as an employee. Misclassifications can result in hefty fines for the employer.

So, how do you know if a worker is an employees or an independent contractor under Minnesota law?

This can involve a complicated analysis of various factors, including (1) the right to control the means, manner time and place of performance; (2) the mode of payment; (3) the furnishing of equipment, tools, materials and workspace; (4) control over the premises where the work was done; and (5) the right of discharge.

There are a few industries in Minnesota with specific and even more complicated rules on this question. In particular, the construction industry uses is own 14-prong test.

Note: additional and different factors are relevant under the Federal independent contractor test.

Contact Taylor Sztainer to discuss whether you are properly classifying workers under state and Federal law.